Spain Regulatory Quality

Spain’s regulatory quality, as measured by the World Bank’s Worldwide Governance Indicators, has declined markedly since its all-time peak of 1.33 in 2002, reaching a historic low of 0.56 by 2025, ranking 59th globally. This represents a substantial deterioration from its earlier performance in the 1996–2008 period, when scores consistently remained above 1.00, reflecting stronger institutional frameworks for regulation. The 2025 value places Spain just above Costa Rica (0.55) and slightly below Botswana (0.59), positioning it among upper-middle-income economies in regulatory effectiveness. The sustained downward trend over nearly two decades suggests weakening capacity or consistency in policy implementation, transparency, and bureaucratic efficiency. Unlike peer nations that have stabilized or improved, Spain has faced challenges linked to administrative complexity, uneven enforcement, and perceived unpredictability in regulatory processes. The erosion since the mid-2000s, particularly following the global financial crisis and subsequent austerity measures, may reflect institutional strain and reform fatigue. Without targeted efforts to streamline regulations, enhance transparency, and rebuild institutional trust, Spain’s current trajectory in regulatory quality is likely to remain stagnant or face further decline.